11. How many pounds of raw material are needed to make one unit of each of the two products? 12. What contribution margin per pound of raw material is earned by each of the two products? 13. Assume that Cane's customers would buy a maximum of 80.000 units of Alpha and 60,000 units of Beta. Also assume that the raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits? 14. If Cane follows your recommendation in requirement 13, what total contribution margin will it earn? 15. If Cane uses its 160,000 pounds of raw materials as you recommended in requirement 13, up to how much should it be willing to pay per pound for additional raw materials? Chapter 12 Foundational Problem ALPHA BETA UNIT COSTS(based on production of 100,000 units of each product). DIRECT MATERIAL DIRECT LABOR $24 $18 20 16 VARIABLE OVERHEAD 10 6 10 6 VARIABLE SALES TRACEABLE FIXED COMMON FIXED COST 12 10 14 12 ADDITIONAL INFORMATION SELLING PRICE PER UNIT $120 $80 MATERIAL COST PER POUND 6 6